Blog Article

When moving home do you buy or sell first?

So you’ve decided to move on from
your first home, whether you’ve simply outgrown it or looking to upgrade. Think
that purchasing your next home is easier than your first home? Been there, done
that? Well, according to experts, buying a second or even third home can often
be as daunting as buying the first one.

The key is, no matter where you
are buying, is not to be influenced by “the market” more than by your own needs. The “right time” to purchase is when it
is right for you, which doesn’t always coincide with what condition the market
is in. Waiting for this magical “right time” or for prices to go up in down is
taking a gamble on your family’s future and not worth it.

Luckily, with careful planning,
understanding what you can afford and knowing how to sell and buy, upgrading
homes can be hugely rewarding.

So, thinking of upgrading?

The most important thing to keep
in mind if upgrading in today’s market is that mortgage rates are at record
lows. They must increase at some point in the future, so it’s essential to calculate your mortgage repayments with this in mind.

If thinking of upgrading,
questions to ask yourself include:

How much equity do you have in your current
home?

Has my financial situation improved since my
previous purchase?

How have broader market values changed?

Will I be buying and selling in
the same market?

Buy or sell first?

Whether you can afford to buy
first or have to sell first will come down to your financial position, with
each option having pros and cons.

If you haven’t got capacity to
buy before selling, your outlook can become more difficult in most markets.

However, for most people it can
be better to sell first and then know your exact budget. You can purchase your
dream home with confidence, without feeling rushed to make a purchasing
decision - at worst you can rent in the short-term until you find your perfect
home.

On the other hand, if you buy
first you’ll be rushed into selling your property and may have to accept a
lower price for a quick sale.